Macau's gaming revenue boom roars on with another estimate beat
Gross gaming revenue reached 22.1 billion patacas (S$3.6 billion) for the month, according to data released by the Gaming Inspection and Coordination Bureau on Friday (Aug 1). The result surpassed the median analyst estimate of a 13 per cent year-on-year increase and has returned to 90 per cent of the pre-pandemic level in 2019 – the strongest post-Covid recovery so far.
The cyclonic storm that swept through during a mid-month weekend did not appear to affect gamblers' appetite for betting, Citigroup analyst George Choi wrote in a note. A survey conducted by Citi near the typhoon weekend found that premium bettors spent 32 per cent more at gaming tables than during the same period last year.
Macau's pace of gaming revenue recovery has picked up in recent months, with casino operators rolling out a series of concerts and entertainment shows to attract more visitors from the mass tourism market.
Meanwhile, sentiment among premium players has also been improving amid a bullish stock market in Hong Kong and mainland China.
Macau reported about 2.9 million visitor arrivals in June, returning to 93 per cent of the pre-pandemic level in 2019. The city will release July's figures later this month.
Casino operators including Sands China, Galaxy Entertainment Group, and MGM China Holdings have introduced more luxury hotel rooms, adding attractiveness for the city.
Macau's performance in the coming months will test the strength of its gaming recovery, as uncertainties over China's broader economic slowdown and global trade tensions loom. Many big bettors are in the real estate and trade industries, which have been hit by these headwinds.
The Bloomberg Intelligence index of Macau casino operators rose 21 per cent in July, while the benchmark Hang Seng Index gained about 3 per cent. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
6 hours ago
- Business Times
Cathay Pacific warns of declining fares and cargo uncertainty, shares fall
[HONG KONG] Cathay Pacific Airways warned on Wednesday (Aug 6) of declining airfares, challenges at its budget carrier and uncertain cargo market conditions, sending its shares down almost 10 per cent to a one-month low. Hong Kong's flagship airline also said it had ordered 14 more Boeing 777-9 wide-body jets as it expands long-haul routes, taking its total orders for the model to 35 with options for another seven. Cathay's first-half profit rose 1 per cent to HK$3.65 billion (S$597.7 million) on a strong jump in passenger numbers, lower fuel prices and a steady cargo performance. But passenger yields, a proxy for airfares, fell 12.3 per cent at its main brand and 21.6 per cent at low-cost carrier HK Express, as Cathay and its rivals added capacity. 'HK Express continues to face short-term challenges,' chairman Patrick Healy said after the budget airline posted a first-half loss of HK$524 million, before net finance charges and taxation. Healy said Cathay was taking a long-term view and expected HK Express to become profitable. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Cathay shares ended 9.7 per cent lower at their lowest close since Jul 4, having seen their biggest one-day percentage drop since January 2021. The benchmark Hang Seng Index gained 0.3 per cent. 'The results were in line with expectations but the performance from the budget airline segment was not impressive,' said Steven Leung, a sales director in Hong Kong at brokerage UOB Kay Hian. Yields at Asia's airlines are coming down from post-pandemic record highs as carriers add capacity, intensifying competition. Asian peer Singapore Airlines said last week its yields declined 3.5 per cent in the April to June quarter, while those at its low-cost carrier Scoot fell 4.7 per cent. Cathay's chief commercial officer Lavinia Lau said a rise in long-haul flights and transit passengers was also pushing yields lower. North America yields took the biggest hit, falling by 17.5 per cent, and pressure on those routes could continue as Cathay added 50 per cent more US-bound capacity this summer and US visa issues for Chinese nationals may impact traveller numbers, Lau said. Bookings for Japan have not yet recovered to normal levels since a substantial drop-off in June amid rumours an earthquake would strike the country, CEO Ronald Lam said. Based at the world's busiest cargo airport, Cathay is one of Asia's largest cargo carriers and has benefitted from rising volumes of e-commerce out of China. Cathay said its cargo business showed resilience despite uncertainty caused by changes to US tariffs this year, in particular the cancellation of a duty-free exemption for low-value packages from China. The cargo division's half-year revenue rose 2.2 per cent, while yields fell 3.4 per cent. Cathay's order for 14 more 777-9 planes with GE engines exercised options secured in a 2013 order for 21 of the jets. It expects delivery by 2034. The long-delayed 777-9, Boeing's latest version of its 777, has not yet been certified. The model is undergoing flight testing and Boeing hopes to start deliveries next year. Cathay said it expects its first 777-9 delivery in 2027. REUTERS
Business Times
7 hours ago
- Business Times
Allen Law breached fiduciary duties as director of Park Hotel Management, High Court rules
[SINGAPORE] Businessman and hotelier Allen Law breached his fiduciary duties owed to his company Park Hotel Management (PHMPL) which is now in liquidation, a Singapore High Court judge ruled on Wednesday (Aug 6). 'When his company was in financial peril, he transferred its viable assets and businesses (effectively) to himself at a gross undervalue and manipulated the books of the company to eliminate receivables owed by him and his entities, leaving the creditors with nothing,' said Justice Hri Kumar Nair. Law had transferred all of PHMPL's valuable assets to three companies under his control in March 2021; in doing so, the founder of Park Hotel Group did the opposite of what the law demands, Justice Nair said. 'Law showed contempt for his fiduciary obligations – his breaches are beyond peradventure. While PHMPL may have failed because of events beyond his control, his response was entirely regrettable. He appropriated PHMPL's assets for himself and manipulated PHMPL's books to hide his subterfuge,' the judge said. ' His conduct, both in relation to the 'restructuring' and his defence of these proceedings, was dishonest and dishonourable. ' — Justice Hri Kumar Nair 'His conduct, both in relation to the 'restructuring' and his defence of these proceedings, was dishonest and dishonourable. His first and only thought was to benefit himself.' As a result of the Covid-19 pandemic, the tourism, hospitality and F&B industries suffered greatly, Justice Nair noted. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up At first, PHMPL's subsidiaries, Park Hotel CQ (PHCQ) and Grand Park OR (GPOR), received temporary relief under the Covid-19 (Temporary Measures) Act from their contractual obligations to pay rent. PHCQ operated the Park Hotel Clarke Quay, while GPOR ran the Grand Park Orchard hotel. However, by November 2020, when the Covid-19 relief ended, PHCQ and GPOR's positions had deteriorated further, Justice Nair said. 'No solution was in sight… Mr Law knew that PHCQ and GPOR were doomed.' The landlord of GPOR, an entity known as NPP which is linked to Chinese businessman Du Shuanghua's Bright Ruby Resources, 'consistently rejected' Law's requests to revise the terms of its lease. Said Justice Nair: 'While there were some negotiations with Ascendas Hospitality Reit (ART) to adjust the rent and security deposit under Park Hotel Clarke Quay's lease, nothing materialised.' On Feb 17, 2021, PHMPL's financial controller Tang Buck Kiaw provided Law with calculations that showed both PHCQ and GPOR were expected to incur significant net losses in 2021 if the group's subsequent application for Covid-19 relief were denied. Just days later, on Feb 20, NPP issued a letter of demand to GPOR for S$1.4 million, which triggered immediate action from Law. On Feb 22, Law wrote to Tang in an e-mail, saying: 'Sounds like we have to proceed with the restructuring.' 'That 'restructuring' was the genesis of these proceedings,' Justice Nair said. The restructuring plan The first part of the restructuring was PHMPL's disposal of its assets to companies linked to Law via four written agreements, the judge said. The agreements, all dated around March 2021, resulted in PHMPL transferring several hotel management agreements; the 'Park Hotel' and 'Grand Park' brands; 135 trademarks and the holding company behind Yan restaurant and the Smoke & Mirrors bar; as well as a training academy called Singapore Institute of Hospitality, to the three companies which were ultimately owned by Law. All of PHMPL's assets, excluding PCHQ and GPOR, were transferred for a total sum of S$3.4 million and US$40,000. 'The restructuring… was in essence a plan to move PHMPL's revenue-generating assets to the defendant companies, (that is,) to himself; eliminate all liabilities owed to PHMPL by him and entities owned by him; and leave PHMPL a shell carrying only substantial liabilities,' Justice Nair said. Evidence has established that Law 'orchestrated the restructuring with Tang as his trusted aide', the judge added. Almost immediately after receiving the Feb 22, 2021, e-mail, Tang responded, asking Law: 'Who can I talk to (in order) to get this started quickly?' On the same day, Law prepared a chart setting out the new structure of the business, Justice Nair said. 'It is evident that the purpose of the restructuring was to protect PHMPL's assets from its creditors. 'Law's plan was in fact summarised in Tang's e-mail to him… where she wrote: '(we) have to do it such that (NPP and ART have) no chance to unwind.'' Tang admitted under cross-examination that she meant that she wanted to complete the transfer of assets and businesses to Law's companies so that the creditors could not unwind them. She also admitted that '(there) was a sense of urgency' because it was only a matter of time before creditors would be at the door, Justice Nair said. In June 2021, NPP filed an application to wind up PHMPL, with the company entering into liquidation on Jul 2 . When was Park Hotel insolvent? One of the key issues that arose in this case was when Park Hotel Management became insolvent. Singapore's Insolvency, Restructuring and Dissolution Act considers that if a company enters into undervalued transactions within a three-year period before it is wound up, liquidators can apply to the court to recover assets that have been transferred to another party. Justice Nair said that when he heard parties in court, Law's legal team accepted that PHMPL was insolvent by March 2021. 'They departed from that position in their closing submissions and adopted Law's evidence at trial where he maintained that PHMPL still had a viable business even after the completion of the agreements.' The test for insolvency is whether the company's current assets exceed liabilities within a 12-month timeframe. Justice Nair said there was 'no doubt that PHCQ and GPOR were insolvent or financially parlous as at December 2020.' In any event, PHMPL was insolvent at the latest by Feb 20, 2021, when NPP issued the demand for S$1.4 million, as it was 'indisputable' that the corporate guarantees would shortly be called on given that GPOR had 'neither the means nor the intention' of meeting those demands. In analysing the evidence provided by the defence's valuation expert on the value of PHMPL's assets, Justice Nair said that his analysis was 'affected by other material and adjustments he had made, which were highly selective and problematic'. Notably, Justice Nair decided that the PHMPL trademarks were worth S$1.9 million, despite them being purchased by Law's companies for just S$1. Backdating of transfers The second part of the plan, said Justice Nair, was to 'cause PHMPL to declare and backdate substantial dividends in Law's favour and to effect a series of transfers and set-offs in PHMPL's books, most of which were also backdated, to eliminate his and his entities' liabilities to PHMPL'. Around March 2021, Law got PHMPL to declare a S$22 million dividend in his favour, but backdated this to September 2020. The dividend was said to be repayment for a director's loan that Law had extended to PHMPL. During the trial, PHMPL's finance manager testified that Tang had instructed him to 'reduce or remove the account balances' and 'to look into accounts and see which are the ones that can be fully knocked off'. Another S$5.9 million was declared in favour of Law in April, after PHMPL's assets and businesses had been disposed of and PHMPL had no ability to earn revenue, Justice Nair said. Significantly, Tang expressly warned Law that declaring the $5.9 million dividend would be viewed as preference over creditors. The liquidators will have two weeks to file submissions on the reliefs they are seeking from Law and on costs. Law's legal team will have two weeks to respond. A representative of the defendants said: 'This remains a legacy matter arising from the exceptional circumstances of Covid-19 lockdowns in 2020 and their unprecedented impact on the hospitality sector. The judgment is being reviewed and appropriate next steps are being considered.' A team of lawyers, led by Allen & Gledhill's William Ong, represent the liquidators. Law and his companies are represented by lawyers from TSMP Law Corporation, led by Thio Shen Yi. Park Hotel Clarke Quay has since been rebranded as The Robertson House by The Crest Collection and is managed by The Ascott Limited. Grand Park Orchard Hotel is being operated as Pullman Singapore Orchard.
Business Times
8 hours ago
- Business Times
Wee Hur jumps 6.5% to record high as Australia raises cap on foreign students
[SINGAPORE] Shares of student accommodation operator Wee Hur hit an all-time high on Wednesday (Aug 6), following news that Australia will lift its foreign student cap in 2026. As at 1.57 pm, the counter was trading at S$0.74, a record high according to Bloomberg data, with around 14.6 million shares changing hands. This was 6.5 per cent or S$0.045 above its Tuesday closing price of S$0.695. It ended Wednesday at S$0.74, with some 17.2 million shares transacted. The stock is up more than 15 per cent since the start of the trading week. On Monday, the Australian government announced that the country would raise its cap on foreign students by 9 per cent to 295,000 next year and prioritise applicants from South-east Asia. In the year to date, the counter has risen 76.2 per cent, from S$0.42 on the last trading day of 2024. Wee Hur has eight facilities for purpose-built student accommodation in Australia. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It is one of 30 Singapore-listed stocks in the portfolio of US-based exchange-traded fund (ETF), Avantis International Small Cap Value ETF. As at Monday, the ETF had increased its stake in Wee Hur to 22.4 million shares, from 21.4 million shares on Jul 24. Rule relaxed Nearly 600,000 student visas were granted in Australia in FY2023. International students flocked to the country in record numbers following the Covid-19 pandemic, with those from China and India forming the largest cohorts. Limits on places for foreign students were announced in 2024. The Australian government also more than doubled the foreign student visa fee and pledged to close loopholes permitting students to continuously extend their stays. However, as efforts to lower foreign student numbers have been succeeding, an additional 25,000 places will be granted in 2026, the Australian government said on Monday. International Education Assistant Minister Julian Hill noted that the measures to curb migration were 'bearing fruit', allowing for the cap to be moderately raised next year, Reuters reported. Around two-thirds of places will be allocated to universities, and one-third to the vocational skills training sector. Additionally, larger, public universities must demonstrate that domestic and international students have 'access to safe and secure housing' and recruit more students from South-east Asia, the Australian government said. As Australia seeks to reduce economic reliance on China, South-east Asia relations have been a focus of Prime Minister Anthony Albanese's government. Hill noted that it was important for Australia's 'future soft power' that the country 'continues to bring the best and brightest from (its South-east Asian) neighbours to have a bit of Australia with them for the rest of their life'. Goh Wee Ping, chief executive of Wee Hur's fund management business, Wee Hur Capital, said: 'The government's decision to link international student intake with dedicated student accommodation is a smart and necessary step.' Beds offered by the student accommodation operator ease pressure on the private rental market, he added. 'This policy clarity gives providers like us the confidence to accelerate our pipeline, working alongside universities and cities to ensure international education growth is supported by purpose-built infrastructure – not squeezed into an already tight housing market.'
